Personal Taxation

PERSONAL USER

Dependant on the manufacturer's list price in effect at midnight on the day prior to first registration (including all factory and dealer fitted accessories), but excluding Road Tax and First Registration Fee, you will be required to pay "Benefit in Kind" taxation based on the published CO2 emissions of the vehicle. This is known as the P11D value and refers to the form that notifies HMRC of the value of your benefit.

The amount of tax you will pay will be based on a percentage of the above list price that is calculated using a table published by HMRC and is geared to encourage the use of more economical and fuel effecent vehicles. Please note that although Diesel vehicles benefit from a lower CO2 figure than an equivalent Pertol engine, they have a penalty of an additional 3% added to the table figure due to the fact they are less environmentally friendly.

Having calculated the value of the benefit you will then be charged an amount equivalent to your tax coding at either 20% or 40% and this will be the actual amount you pay.

In summary the best way to avoid punative personal taxation on a company car is to ensure you have a vehicle at the lowest capital cost with most fuel efficent engine. 

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